Crossroads Grassroots Policy Strategies

Crossroads Grassroots Policy Strategies, also known as Crossroads GPS, is a secretly-funded 501(c)(4) conservative political group created in June 2010 by right-wing political operatives and "advised" by Karl Rove and former RNC chairman Ed Gillespie to support Republican candidates. It is a spin-off group of American Crossroads, a 527 Political Action Committee under the same leadership.

According to the Sunlight Foundation, Crossroads GPS spent $17 million in the 2010 midterm elections without disclosing their donors. NBC reported in 2010 that "a substantial portion of Crossroads GPS’ money came from a small circle of extremely wealthy Wall Street hedge fund and private equity moguls, according to GOP fundraising sources who spoke with NBC News on condition of anonymity. These donors have been bitterly opposed to a proposal by congressional Democrats — and endorsed by the Obama administration — to increase the tax rates on compensation that hedge funds pay their partners, the sources said."

In March 2011, Crossroads GPS spent $750,000 airing a misleading ad attacking unions, in response to public opposition to Wisconsin Governor Scott Walker's union-busting efforts.

Secret, Unlimited Fundraising
Thanks to the U.S. Supreme Court's January 2010 Citizens United decision, groups like American Crossroads and Crossroads GPS can legally advocate for or against political candidates without restrictions on the amount of money they can raise from individuals and corporations. And thanks to the Court's 2007 FEC v. Wisconsin Right to Life decision, "independent" groups organized under 501(c) of the tax code (like Crossroads GPS) can run "issue-oriented" political ads without disclosing their donors. Coupling these two decisions together, "shadow Republican groups formed by longtime party officials and party operatives are raising and spending hundreds of millions of dollars in [the 2010 election]]. . . most of which is going to come in the form of secret undisclosed contributions," says Fred Wertheimer of Democracy 21, a nonpartisan campaign-finance-reform group.

As a nonprofit 501(c)4 organization, Crossroads GPS is not required by the IRS to disclose its donors, as such organizations are intended to "promote social welfare." According to the New York Times, "[t]he rule of thumb . . . is that more than 50 percent of a 501(c)(4)’s activities cannot be political." however, a 501(c)(4) is permitted to "intervene in political campaigns as long as its primary purpose is the promotion of social welfare."

The idea that American Crossroads only invests in campaign advertisements to promote social welfare "is a complete joke," Democracy 21's Wertheimer told TIME magazine in September 2010. "Karl Rove and Gillespie did not create this organization to influence issues in America. The organization was created to elect Republicans and defeat Democrats."

2010 Calls for Investigations
In late September 2010, Montana Senator Max Baucus called on the IRS to investigate political activity by groups like Crossroads GPS, in violation of the Internal Revenue Code. The Campaign Legal Center and Democracy 2010 joined the call in early October.

With hundreds of millions of dollars being spent in election contests by tax-exempt entities,” he wrote, “it is time to take a fresh look at current practices and how they comport with the internal revenue code’s rules for nonprofits.” In his letter, Mr. Baucus asked the I.R.S. for a report of its findings, highlighting any possible violations of tax laws. Based on the agency’s review, he said, he plans to ask the committee to open its own investigation. “Groups who abuse the tax code claiming to be non-profits while pushing an overtly political agenda should not be able to trample justice, or fair, honest and open elections,” the senator said.

Larry Kudlow's Call for Disclosure
On October 6, 2010, conservative CNBC host and National Review columnist Larry Kudlow called for American Crossroads to make their donors public.


 * “Why not have the media posting of the contribution information on the Internet? That's all. And let everybody decide… Who, what, when, how, where, who got it? Put it up on the net and let free speech and free politics take its work… American Crossroads and Karl Rove and all them should post also.”

March 2011 Anti-Union Ads
In February and March 2011, nationwide protests erupted against Republican governors seeking to limit public sector collective bargaining rights. With support declining for the GOP's anti-union stance, Rove's group spent $750,000 in early March to counteract that slide by demonizing unions. The group appeared to be looking towards the 2012 elections.

This article documents the errors and misleading statements in the advertisement.

2010 Midterm Elections
Crossroads GPS reportedly spent $17 million in the 2010 elections supporting Republican candidates (most often by running ads attacking their opponents). Here is a list of the targeted candidates, noting whether the expendites were opposing or supporting that candidate, and whether the candidate won or lost the election.


 * Giannoulias, Alexander	(D)	IL	 Senate	$4,479,605	(against) 	Lost
 * Murray, Patty	               (D)	WA	 Senate	$3,597,316	(against)	        Winner
 * Reid, Harry	                       (D)	NV	 Senate	$2,253,258	(against)	        Winner
 * Conway, Jack	               (D)	KY	 Senate	$1,145,296	(against) 	Lost
 * Sestak, Joseph A Jr	       (D)	PA	 Senate	$809,196	(against)	        Lost
 * Carnahan, Robin	               (D)	MO	 Senate	$714,234	(against) 	Lost
 * Boccieri, John A	               (D)	OH	 House	$447,125	(against)	        Lost
 * Carnahan, Robin	               (D)	MO	 Senate	$405,118	(against)	        Lost
 * Crist, Charlie	               (I)	FL	 Senate	$354,016	(against) 	Lost
 * Rubio, Marco	               (R)	FL	 Senate	$353,605	(support)	Winner
 * Costa, Jim	                       (D)	CA	 House	$337,825	(against)  	Winner
 * Conway, Jack	               (D)	KY	 Senate	$337,270	(against)         Lost
 * Reid, Harry	                       (D)	NV	 Senate	$332,473	(against)	        Winner
 * Rodriguez, Ciro                  (D)	TX	 House	$331,600	(against) 	Lost
 * Davis, Lincoln	                (D)	TN	 House	$272,100	(against)	        Lost
 * Carnahan, Russ	                (D)	MO	 House	$250,225	(against)	        Winner
 * Donnelly, Joe	                (D)	IN	 House	$250,003	(against) 	Winner
 * Pomeroy, Earl	                (D)	ND	 House	$247,700	(against) 	Lost
 * Bennet, Michael 	         (D)	CO	 Senate	$213,477	(against)	        Winner
 * Angle, Sharron                    (R)	NV	 Senate	$126,014	(support)	Lost
 * Oberstar, James 	         (D)	MN	 House	$48,546		(against) 	Lost

Sourcewatch resources

 * American Crossroads
 * Karl Rove
 * Edward W. Gillespie

Contact
Crossroads GPS 1401 New York Avenue, NW Suite 1200 Washington, DC 20005 Phone: (202) 559-6424 info@crossroadsgps.org